If crosser company were to manufacture 430000 finished

Reference no: EM13568759

Crosser Company budgets on a quarterly basis. The following beginning and ending inventory levels (in units) are planned for the first and second quarters of 2012:

                            Jan-March, 2012 April-June, 2012
Raw materials       43,000         48,000
Work in process   15,000         18,000
Finished goods 81,000         45,000

Two units of raw material are needed to produce each unit of finished product.

Required:

If Crosser Company were to manufacture 430,000 finished units (in total) during the first two quarters of 2012, how many units of raw material would it need to purchase?
Prepare the purchases budget for the first six months of 2012. Enter all amounts as positive numbers.

Dec. 31, 2011 and June 30, 2012
Required production in units
Raw material needed per unit
Units of raw material needed
Add: Desired ending inventory
Total budgeted needs
Less: Beginning inventory
Units of raw material to be purchased

Reference no: EM13568759

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